DF Deutsche Forfait AG's (ETR:DFTK) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• DF Deutsche Forfait will host its Annual General Meeting on 2nd of July
• Total pay for CEO Behrooz Abdolvand includes €250.0k salary
• Total compensation is similar to the industry average
• DF Deutsche Forfait's three-year loss to shareholders was 13% while its EPS was down 37% over the past three years

In the past three years, the share price of DF Deutsche Forfait AG (ETR:DFTK) has struggled to generate growth for its shareholders. Per share earnings growth is also poor, despite revenues growing. Shareholders will have a chance to take their concerns to the board at the next AGM on 2nd of July and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

See our latest analysis for DF Deutsche Forfait

Comparing DF Deutsche Forfait AG's CEO Compensation With The Industry

According to our data, DF Deutsche Forfait AG has a market capitalization of €20m, and paid its CEO total annual compensation worth €351k over the year to December 2023. Notably, that's a decrease of 32% over the year before. In particular, the salary of €250.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the German Diversified Financial industry with market capitalizations below €187m, reported a median total CEO compensation of €350k. From this we gather that Behrooz Abdolvand is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	€250k	€237k	71%
Other	€101k	€281k	29%
Total Compensation	€351k	€518k	100%

On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. It's interesting to note that DF Deutsche Forfait pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

DF Deutsche Forfait AG's Growth

Over the last three years, DF Deutsche Forfait AG has shrunk its earnings per share by 37% per year. Its revenue is up 170% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has DF Deutsche Forfait AG Been A Good Investment?

With a three year total loss of 13% for the shareholders, DF Deutsche Forfait AG would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for DF Deutsche Forfait that investors should think about before committing capital to this stock.

Important note: DF Deutsche Forfait is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com